CompositesWorld
Issue link: https://cw.epubxp.com/i/742140
NOVEMBER 2016 10 CompositesWorld GARDNER BUSINESS INDEX: COMPOSITES As third-quarter 2016 closes out, new orders and employment go up. » With a reading of 50.7, the Gardner Business Index showed that the US compos- ites industry, in September, had expanded for the second straight month. e growth was slightly slower, however, than that seen in August. New orders grew for the third month in a row, although the rate of growth dipped a little bit in September. Nevertheless, the new orders subindex was at its second highest level since June 2015. Produc- tion increased for the second consecutive month. Although the production growth rate slowed in September, it still was reasonably strong. With the exception of one month, the backlog subindex had contracted since December 2014. However, the backlog subindex has shown comparatively dramatic improvement since January of this year. Employment increased in both August and September. is subindex had been alternating between growth and contraction since February. Exports continued to contract in September, and the rate of contraction accelerated somewhat during August and September. However, the overall trend in that subindex since November 2015 appeared to remain positive. In September, supplier deliveries lengthened for the fifth time in six months. Material prices increased for the eighth month in a row. e rate of increase decelerated slightly in September compared with August. However, the index remained near the highest level it has reached since the summer of 2015. Prices received, as September closed out, had decreased every month but one since August 2015. Also, the future business expectations subindex decreased marginally in September. at said, the overall trend in the subindex had been up since January. Among the target markets for US composites manufacturers, the aerospace industry contracted for the second time in four months. e level of the aerospace subindex in September was at its lowest since January. It has been a much rougher go for the automotive industry recently. e automotive subindex in September had contracted every month but one since November 2015. Also, another manufacturing subindex, which is mostly consumer goods, expanded in September for the first time since March. In preparation for the September Gardner Business Index survey, a change was made in the options available to manu- facturers asked about their future capital spending plans. e survey gave respondents the additional option of selecting zero (US$0) for future spending plans. is represents a new lowest option, replacing the previous low, which was a range from US$0 to US$125,000. For that reason, it is not possible to compare September's value to that recorded in previous months. September 2016 — 50.7 Steve Kline, Jr. is the director of market intelligence for Gardner Business Media Inc. (Cincinnati, OH, US), the publisher of CompositesWorld magazine. He began his career as a writing editor for another of the company's magazines before moving into his current role. Kline holds a BS in civil engineering from Vanderbilt University and an MBA from the University of Cincinnati. skline2@gardnerweb.com A GBI reading of >50.0 indicates expansion; values <50.0 indicate contraction. 60 50 40 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 June 16 Jul 16 Aug 16 Sep 16 50.7 GBI SEPTEMBER 2016